Interest cut rate due to debilitated conditions?

According to Westpac Chief Economist Bill Evans, “Inflation pressures are weak, labor markets are soft, and investment and export plants have softened.” However, the softness in the labor force may have been overdone ad maybe we started to see the signs toward better employment conditions.  Due to the weak business conditions, Australia’s Central Bank decides to cut interest rate. Westpac strongly predicted that Reserve Bank of Australia will cut official rates in December.

Interest rates may cut next few months after employment rose last September. One factors of the interest cut is the employment rose because Economists had expected the jobless rate to stay at 5.3% which is very satisfying for the booming economy. According to Normura Chief Economist Stephen Roberts, “The better than expected figures means there is “very little likelihood” of the RBA changing the cash rate from its 4.75% at November. Expectedly, if the interest rate will cut, we will have stable home loan rates in which both the tenants and landlords benefited on it and in business investment will rose and have a more positions economic outlook.